I have been considering consolidating my bills so that i can just get over paying them with just one payement...i have some concerns though...is the intrest rate too high? What are monthly payments like...and can ppl with bad credit do it??
2007-06-14 13:39:48 · 7 answers · asked by Daisy M 1 in Business & Finance ➔ Personal Finance
what are good consolidating companies???
2007-06-14 14:34:34 · update #1
Yes to all of the above questions--- It does help, mainly with credit cards, since the rates tend to be highest on those. I would recommend doing this only if you have a decent amount of credit debt, or multiple (5+ cards). Otherwise it wouldn't be worth your time. My brother had 7 cards, all different types-- minimum payments (monthly) totalled about ~$550 after consolidating them all his monthly was at $283.
2007-06-14 13:45:04 · answer #1 · answered by metry_2000 2 · 0⤊ 0⤋
If you feel you need to consolidate, do it. What I would do first is clear your kitchen table and lay all your bills out.
Prioritize your bills. At least pay the minimum on all bills, then tackle the ones with the smallest balances first, and pay extra to erase that bill. If it's a credit card, call them up and cancel the card. Then what ever you paid for that card, use it to next bill, and so on. By tackling your balances, you will feel accomplishment.
If your able to get a lower rate on any of your cc, transfer as much as you can, then cancel the card that has a zero balance.
Most important, at least pay the minimum and build a good track record which will lead to lower rates in the future
Good Luck!
2007-06-14 13:48:47 · answer #2 · answered by AE N 5 · 0⤊ 0⤋
Debt consolidation does not usually work well because it does not address the root cause of the debt - our spending habits!!!
Back when I was broke and living in debt, I obtained a debt consolidation loan for my credit card debt. When I completed paying $315.60 for what seemed like forever, my credit card debt was HIGHER than the amount I had consolidated.
Why? Because I did not change my spending behavior!!!
I decided to apply the first rule of holes to my debt. I was in a hole, so I stopped digging!!!
I recommend that you contact each of your credit card companies and ask them to remove the fees and reduce your interest rates. You will be surprised how many of them will actually work with you!
By the way, when I changed my spending behavior and STOPPED signing up for more debt, I became debt-free in 14 months! You can do it too!!!
2007-06-18 09:41:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Have seen lots of people asking info on bad credits. Well, if you need to get your problem solved onarrange loans or other finance, and usually means you will pay more interest on any loan you take out.
2007-06-14 15:07:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I tried it through one of those debt consolidation companies and it really didn't seem like I was getting anywhere so I ended up going through my bank instead. The interest rate is lower and I can actually see the progress being made as the payment book gets smaller.
2007-06-14 13:47:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
http://debt-trap.com/category/Debt-Consolidation-Basics.html
2007-06-15 00:31:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It can be a good deal, but make sure you deal with reputable people who will not charge too much in fees and/or interest. Stay away from the payday loan people!
2007-06-14 13:47:42 · answer #7 · answered by Nothingusefullearnedinschool 7 · 0⤊ 0⤋